NORTH BAY BUSINESS JOURNAL EVENT

2008 Going Green Conference: Building, Technology & Practices

Thursday, October 9, 2008, 7:30-11:45 a.m., Doubletree Hotel, Rohnert Park

E-Mail Express

Name:

Company:

E-mail:

Phone:

Business Insurance: Vantreo settles in, looks for growth; State Fund lowers discount threshold

It’s been close to a year since two former Matsen Insurance executives split from the company to form their own brand in Santa Rosa, and the pair has spent that time “cementing their foundation in the market,” said Steve Farmiloe, chief operating officer for the new company, Vantreo Insurance Brokerage.

Now with a solid client base and portfolio of services, the young brokerage is turning its attention to growth, while forging new frontiers in customer service.

“We didn’t want to grow too quickly in the first year. First we just wanted to set a foundation for the brand and who we are,” Mr. Farmiloe said. “But we do have a strategic plan for the next five years that includes new offices and acquisitions.”

In August 2007, former Matsen President Lynne Wallace and former President of Financial Services Tim Chanter purchased the company’s Santa Rosa office and three quarters of its account volume, citing different plans for business growth. Matsen continues to do business at its office in Eureka.

“The real significant growth has come from the fact that we have aggressively marketed to small businesses. ... We felt like it was a sector that is typically underserved and we wanted to address that,” Mr. Farmiloe said.

Since the split, Vantreo’s business has grown 28 percent, increasing to about $64 million in total written premiums. The group also added a learning center to its office where it hosts a risk management academy and other workshops and seminars.

And what does the name Vantreo stand for?

Van = Vanguard, forward-thinking

Treo = Trio, symbolizing the relationship between the client, broker and carrier.

***

Ever since the California Department of Insurance released a not-so-flattering audit of the state’s largest workers’ compensation provider in December, semi-public State Compensation Insurance Fund has been on the road to recovery, implementing new oversight measures and company executives.

The company has made significant strides overhauling administrative practices and last week announced another move aimed at attracting lost or new customers.

The organization expanded the number of companies eligible for safety standard discounts and increased the possible total discount. Companies that demonstrate excellent safety records have always been offered credit for merit ratings, but those are now being given to small firms for the first time.

State Fund lowered the threshold from a minimum of $250,000 in base premiums, which is the rate times payroll, to $100,000. Officials also increased the total possible reductions to its claims-free credit program from 10 percent to up to 15 percent off premiums.

The changes will go into effect July 1.

***

California Department of Insurance Commissioner Steve Poizner ordered the state’s third largest provider of auto insurance to lower its rates by 15.9 percent, saying its prices were excessive.

Allstate Corp. contested the order, but was later legally forced to comply and the new prices went into effect May 12. The reduction will save the average insurance buyer approximately $124 a year.

The company recently filed for a 9.3 percent increase to its homeowners’ insurance policies.

***

Fireman’s Fund of Novato promoted insurance veteran Michael Berg to president/product executive of its inland marine and related property division. Between 1982 and 2000, Mr. Berg worked as product director for Fireman’s Fund, but later moved to OneBeacon Insurance. Mr. Berg has more than 30 years of experience in the inland marine insurance business.

Fireman’s Fund was also recently recognized by the governor for contributing to the green movement by launching products aimed at encouraging green building.

The Environmental Defense Fund and Gov. Arnold Schwarzenegger recognized the company May 21 during a press conference where they released the report, “Innovations Review 2008: Making Green the New Business as Usual.”

***

The Northbay Workers’ Compensation Association will host a luncheon at 11:30 a.m. Tuesday at the Foxtail Golf Club in Rohnert Park.

Speaker Dr. Timothy Lo will discuss the new standard of care for chronic pain management and another unannounced speaker will provide a legal update. The meeting is approved by the State Bar of California for one hour of credit in minimum continuing education and one legal specialization credit in workers’ compensation.

The cost is $30 for members and $35 for nonmembers.

•••

Submit items for this column to Ashley Verrill at 707-579-2900 ext. 215, averrill

@busjrnl.com or fax 707-579-8475.